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House of Fraser reports record gross profit of £460m

House of Fraser reported a record gross profit of £460.2m for the year to January 31, up £29.6m on 2013, as like-for-like sales increased 5.8%.

Total revenue was £1.3bn and adjusted EBITDA was up 7% on the previous year to £64.4m.

Online sales increased 32% for the 53 week-period, representing 15.4% of total sales. Sales in stores increased by 2.2% on a like-for-like basis.

Chief executive Nigel Oddy said: “The web store has been the largest single store in terms of sales for the last three years and, for the first time this year, it has become the most profitable store in the group.”

The department store chain, which was acquired by the China’s Nanjing Cenbest in September last year, said house brand sales and cash margin both increased by 10% over the period.

House womenswear brands Linea and Biba and menswear brands Criminal and New & Lingwood were said to have delivered particularly strong results.

In the first 11 weeks to April 18, sales were up by 6.5%, with a further improvement in the gross margin rate.

The retailer said it will upgrade six stores in the coming year and increase investment in its multichannel proposition.

It will open a second franchise store in Abu Dhabi at the end of May, with plans to open further stores in the Middle East. As previously reported by Drapers, House of Fraser will open three stores in Nanjing, Chongqing and Xuzhou in China, as well as trading online in China and other international markets, starting with Australia.

Oddy said: “We are confident the group’s business model, with our premium brand positioning and strong multichannel operation, will ensure House of Fraser continues to grow and develop for the foreseeable future.”

@Tara_Hounslea

Readers' comments (1)

  • So, putting this against M&S?

    M&S continues to seriously underperform versus peer competitors.

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